BTCS Inc (OTCMKTS:BTCS) Spikes Up The Chart

Yesterday, in just a single session, the stock of BTCS Inc (OTCMKTS:BTCS) surged upwards by nearly 40% and closed at exactly 15 cents per share. Investors were quite eager to trade the ticker and as a result the daily volume reached 1.28 million shares. The last time the company saw such interest was in late July.

The impressive gains from yesterday come after three months of underwhelming chart performance but unfortunately there wasn’t an immediately obvious reason for the sudden change in sentiment. Maybe the encouraging news that BTCS has been announcing finally reached critical mass. Back in September the company signed a definitive merger agreement with Spondoolies-Tech Ltd., a transaction verification server manufacturer with revenues of $28 million for 2014. Soon after that BTCS and Spondoolies revealed a new transaction verification server, the SP50, that when implemented should help BTCS drastically improve the effectiveness of their operations.

These developments are crucial for BTCS. The company has reported drastic increase in mined bitcoins and generated revenues but for now its balance sheet leaves a lot to be desired – as of June 30 BTCS had:

• $303 thousand cash
• $404 thousand total current assets
• $3.7 million total current liabilities
• $144 thousand quarterly revenues
• $1.25 million net loss

BTCS will have to do something about their losses – for the first half of 2015 they have generated $182 thousand in total revenues while the net loss stands at more than $4.5 million.

Investors should keep in mind that in a Form S-1 registration statement from September BTCS registered for resale close to 39 million shares while the outstanding shares of the company may suffer a significant increase thanks to the shares that are going to be issued as part of the Spondoolies merger.

BTCS is also influenced by the enthusiasm of the bitcoin community. Especially at the moment when the hype around the digital currency is once more on the rise – in around a month the value of the Bitcoin cryptocurrency has jumped upwards by approximately 70%. Still, doing your own due diligence before approaching the stock is mandatory. Take into account the red flags around the company before committing to anything.